After the stagnation recorded in the past quarter in issuances and the negative atmosphere in values characterized by a decrease in issuances, the Israeli insurance startup Vesttoo joins the list of companies with a value of over a billion dollars, and there is also a public company that benefits from this.
The Shore-Tech partnership reported to the stock exchange the raising of the Israeli insurtech company Vesttoo in the C round in the amount of 80 million dollars. According to the information provided to the partnership, the fundraising reflects a value of one billion dollars for the company after the money is fully diluted, which reflects a significant increase from the value according to which Shore-Tech invested in Vesttoo.
After the completion of the fundraising round, Shore-Tech, which did not participate in the fundraising in this round, will hold approximately 1.97% of Vesttoo’s fully diluted share capital.
The one who led the current fundraising is the investment fund Mouro Capital, which led the previous fundraising, and a fund from the Emirates from the Royal Group. Shore-Tech invested $2 million in Vesttoo in April 2021 at a pre-money valuation of $20 million. In January, it sold half of its holding in Vesttoo for $7 million. Shore-Tech’s stock jumped 40% on the Tel Aviv Stock Exchange in a brisk trading cycle.
Vesttoo has developed a technology that allows insurance companies and reinsurers to transfer their insurance risks to the capital market through the use of financial instruments for investment. These devices are built through the use of artificial intelligence, which evaluates the risks of insurance companies objectively and allows them to price their risks. Vesttoo’s goal is to solve the problem of the need to attract capital according to the type and scope of the activity and in accordance with the regulatory requirements, a trend that may increase with the entry of the Solvency II Directive. The company was established in the middle of 2018 by three founders: Yaniv Bartela (CEO), Alon Lifshitz (Chief Product VP) and Ben Tsekel (Chief Technology VP).
In November of last year, Vesttoo completed a fundraising round B in which it raised $15 million at a value of approximately $300 million after the money is fully diluted. Shore-Tech invested for the first time in Vesttoo in April 2021 a total of 2 million dollars according to a value of about 20 million dollars before the money. Since then, as mentioned, half of the holding has been realized, but it is still a significant overflow of value.